2 Stocks in focus after lock-in period ends today; Making ₹624 Cr worth of shares tradable

Synopsis:
Certain investors in Studds Accessories Ltd and Prostarm Info Systems Ltd are now eligible to sell their shares following the completion of the lock-in period. 

A lock-in period is a fixed duration during which certain investors, such as promoters or anchor investors, are restricted from selling their shares after an IPO or allotment. It is designed to ensure market stability by preventing large-scale selling immediately after listing and to demonstrate the investors’ long-term commitment to the company. Once this period ends, the shares become eligible for trading in the open market. 

The lock-in period for anchor investors of Prostarm Info Systems Ltd and Studds Accessories Ltd has ended, allowing them to freely trade their shares in the open market, and the combined value of the shares is worth Rs 624 crore.

Prostarm Info Systems

Prostarm Info Systems Ltd creates and distributes power solutions such as UPS systems, inverters, lithium-ion batteries, stabilisers, and solar systems. The company also sells batteries from other manufacturers and installs them in rooftop solar plants. It serves industries like healthcare, banking, aviation, and government, providing complete power and solar solutions with its own manufacturing and a network that spans all of India.

With a market capitalisation of Rs 1,101 crore, the shares of Prostarm Info Systems Ltd reached a day’s low of Rs 177.01 per share, down 2 percent from its previous day’s closing price of Rs 180.98 per share. Post listing on the stock exchange, the stock has delivered a robust return of 50 percent.

Approximately​‍​‌‍​‍‌​‍​‌‍​‍‌ 3.11 crore shares of Prostarm Info Systems, which are about 53 per cent of the company’s total equity, are free of trading restrictions as their six-month lock-in period comes to an end. At current market rates, the shares that will be unlocked on Wednesday are worth close to Rs 560 crore.

Studds Accessories

Studds started in 1983, growing from a tiny garage into a company that makes over 9 million helmets. It’s the biggest helmet brand in India by revenue and the largest worldwide by volume. People know Studds for its safe and high-quality helmets, which it sells all over India and in more than 70 countries. The company keeps coming up with new ideas and thanks its customers for trusting it for so long.

With a market capitalisation of Rs 2,088 crore, the shares of Studds Accessories Ltd reached a day’s low of Rs 530.10 per share, down 2.2 percent from its previous day’s closing price of Rs 542.50 per share. Post listing on the stock exchange, the stock has corrected by over 5 percent.

Approximately​‍​‌‍​‍‌​‍​‌‍​‍‌ 12 lakh shares of Studds Accessories, which is about 3 per cent of the company’s total equity, will be free of trading restrictions as their one-month lock-in period comes to an end. At current market rates, the shares that are unlocked on Wednesday are worth close to Rs 64 crore.

Written by Satyajeet Mukherjee

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